Hong Kong’s Financial Secretary Doubles Down on Crypto Hub Positioning Despite Crypto Winter

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Paul Chan, Hong Kong‘s Financial Secretary, mentioned that, regardless of the continued market downturn, town would proceed to work towards turning into a significant crypto hub, attracting companies from the world over.

Chan, the Financial Secretary since 2017,  was talking at a Web3 discussion board, Bloomberg reported, when he mentioned that Hong Kong would turn out to be the place for startups of all types – together with crypto and fintech – to arrange store in 2023.

He reiterated that town plans on turning into a regional crypto hub – regardless of the autumn in crypto costs and the ever-spreading contagion prompted by a variety of main corporations falling, not the least of which is the FTX change.   

The Financial Secretary said that,

“As sure crypto exchanges collapsed one after one other, Hong Kong grew to become a top quality standing level for digital asset corporates.” 

Per Chan, whereas different crypto facilities – comparable to Singapore – are pulling the breaks on their crypto plans, Hong Kong has a strong regulatory framework that “matches worldwide norms and requirements,” but additionally prohibits “free-riders.” 

This is why a number of main tech companies and startups are contemplating shifting their headquarters to Hong Kong or increasing to town, he mentioned however didn’t present names.

And that is not all. Speaking on the similar occasion, Joseph Chan, Undersecretary for Financial Services and the Treasury, mentioned that Hong Kong is getting ready to concern extra licenses for digital asset buying and selling companies, and is planning a session on crypto platforms, the place it could discover the potential for retail participation within the crypto business. He mentioned that the main points can be revealed quickly.

Hong Kong going crypto on a number of fronts

Hong Kong appears to be working arduous on its digital assets-related plans.

As reported simply days in the past, town’s monetary companies companies are on the point of allow their retail shoppers to commerce digital property within the coming months, following the Anti-Money Laundering and Counter-Terrorist Financing Act handed by the Legislative Council. “We have seen a number of native brokers and fund managers looking for recommendation from us in regards to the licensing necessities underneath the brand new regulatory regime,” Robert Lui, digital asset chief at Deloitte Hong Kong, was quoted as saying. Authorities are more likely to permit retail buyers with a big market capitalization and liquidity to commerce these property, he added.

In mid-December 2022, two exchange-traded funds (ETFs) – CSOP Asset Management’s Bitcoin Futures ETF and Ether Futures ETF – debuted in Hong Kong as the primary of their type within the metropolis.

In November, Hong Kong said it could concern tokenized authorities inexperienced bonds and revealed a number of pilot applications, certainly one of which was the issuance of a brand new batch of tokenized inexperienced bonds for institutional buyers.

Hong Kong can be working on the central financial institution digital forex (CBDC). It was reported in September that it could begin testing out a digital coin known as the e-HKD within the fourth quarter, laying the groundwork for a digital forex to be applied and finally utilized by the general public to buy, generate income transfers, and so on. The pilot scheme can be accompanied by legislation modifications and digital infrastructure to help the e-HKD. 

Also in November, it was said that Mainland China and Hong Kong have been set to co-launch the digital yuan’s first cross-border pilot challenge – because the People’s Bank of China (PBoC)-led challenge edges ever-closer to roll out.


Learn extra: 
Hong Kong Slips Down the Crypto Hub World Rankings
Government Official: FTX Collapse Will Not Stop Hong Kong Becoming Virtual Asset Hub

Hong Kong Regulator Set to Allow Retail Investors Access to BTC, Ether ETFs
Hong Kong May Allow Direct Crypto Purchases

KPMG & Aspen Digital Study Reveals Wealthy Asian Investors Are Keen On Crypto
NFT Play-to-Earn Gaming Most Popular in India, Hong Kong, and UAE, Survey Finds


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